Conn. says 5 to forfeit money from pyramid scheme

Published 5:15 am, Thursday, October 11, 2012

HARTFORD, Conn. (AP) -- Connecticut's attorney general and consumer commissioner say five former participants in an alleged illegal pyramid scheme have agreed to forfeit more than $200,000.

Attorney General George Jepsen on Wednesday said so-called gifting tables are "inherently deceptive" because promises of money fade as recruitment for more members stalls.

Jepsen and Consumer Protection Commissioner William Rubenstein say the compliance agreements call for the five former participants to forfeit $202,500. They also agreed to not participate in gifting tables or other pyramid schemes and to cooperate with the investigation.

A federal court hearing on Wednesday for another alleged participant was canceled.

To join a gifting table, authorities say new participants must pay a $5,000 gift to the person occupying the "dessert" position at the top of the pyramid as others are recruited.